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DALLAS, Nov. 30, 2010 (GLOBE NEWSWIRE) --
Builders FirstSource, Inc. (Nasdaq:BLDR), a leading supplier and manufacturer of structural and related building products for residential new construction in the United States, announced today it has amended its 2007 senior secured revolving credit facility (the "Facility"). The amendment was requested by the company in order to increase its borrowing availability and reduce the commitment fees paid under the Facility.
Commenting on the transaction, Builders FirstSource Senior Vice President and Chief Financial Officer Chad Crow said, "We could not be more pleased with this amendment and the willingness of our bank group, led by Wells Fargo Bank, to partner with us in getting this done. This amendment provides us with up to $25.0 million of additional borrowing availability by reducing our minimum liquidity requirement, and also reduces the maximum borrowing capacity under the Facility from $250.0 million to $150.0 million, lowering our annual interest expense related to commitment fees by approximately $0.4 million. This is a significant improvement to our overall liquidity and should not limit our future borrowing capacity as we do not anticipate our borrowing base will support borrowings in excess of $150.0 million prior to the expiration of the Facility in December 2012."
The Facility has certain restrictive covenants including a fixed charge coverage ratio of 1:1 that, prior to the amendment, was triggered if our excess availability, as determined under the borrowing base formula, fell below a minimum liquidity requirement of $35.0 million. Under the terms of the amendment, the minimum liquidity requirement was reduced and will now be determined on a sliding scale based on our average gross availability, as outlined in the table below:
Ninety Day Average Gross Availability
Minimum Liquidity Requirement
Greater than $130.0 million
Less than or equal to $130.0 million and greater than $80.0 million
Less than or equal to $80.0 million
Floyd Sherman, Builders FirstSource Chief Executive Officer, added , "I don't believe this amendment would have been possible if not for the sacrifices made by all Builders FirstSource employees and their willingness to do whatever it takes to manage through this housing downturn. Our ability to adapt to the pressures placed on us by the sluggish homebuilding industry helped make this amendment possible. While I am very appreciative of our bank group, I am just as appreciative of our employees for putting us in a position to make this happen."